Why stocks could be primed for a Santa Claus rally as resurgent earnings and falling rents push inflation down

Fri, 10/13/2023 - 12:40

nyse santa traders christmas — A man dressed as Santa Claus walks the floor of the New York Stock Exchange, November 24, 2008. U.S. stocks rose further on Monday after data showed U.S. existing-home sales fell in October about in line with expectations, adding to earlier gains on the government's $20 billion injection of new capital into Citigroup.
Shannon Stapleton/Reuters

Investors could see stocks rally in the last stretch of the year, market veteran Ed Yardeni has forecasted.
He says that's because the Fed is likely done with interest rate hikes, which have weighed heavily on equities.
Investors are pricing in a 59% chance the Fed will cut rates by September of next year.

Stocks could be primed for a big year-end rally, thanks to the combined tailwinds of strong corporate earnings and falling inflation, according to market veteran Ed Yardeni.